Greek Merchants Cautious on Summer Sales Amidst Lower Turnover and Asian E-commerce Pressure

Greek merchants are approaching the current summer sales with reserved expectations, as turnover is tracking lower than the previous year, according to Nikos Kouyoumtzis, vice president of the Athens Trade Association. Despite a rise in tourism, consumer spending remains subdued. Households are cutting back on purchases due to increased financial obligations, while tourists are prioritizing expenses for accommodation, food, and transportation.

Small and medium-sized enterprises are grappling with escalating competition from large Asian e-commerce platforms. These platforms have captured a substantial market share by offering exceptionally low prices. Kouyoumtzis described this as a "big problem" for smaller businesses, highlighting the disparity in tax and regulatory frameworks between European companies and international platforms.

Consumers are increasingly relying on market research and price comparisons to find the best deals, checking offers in both physical and online stores. Merchants are urging customers to be cautious of unrealistically low prices, emphasizing the importance of product quality and safety alongside cost. The summer sales primarily focus on clothing, footwear, cosmetics, sunscreens, and home goods, with increased interest in school supplies expected towards the end of the season.

Kouyoumtzis specifically pointed to international e-commerce, particularly Asian websites, as a major pressure point for small and medium-sized Greek businesses. He stated that these platforms distribute vast quantities of products to Greece and Europe, operating under different tax conditions than European businesses. While a 3-euro fee on relevant packages has been imposed, Kouyoumtzis believes it is insufficient. He advocates for these platforms to adhere to the same tax and regulatory rules as European merchants to foster more equitable competition.